1. Fast Fashion
from Savvy Systems
Presented by: Hugh Fisher, Cam Aziz, Lindsey Smith, Katie Goodfellow, Bakeirathy S.

2. The
Industry
• Predict future fashion trends
• Seasonal collections
• Advertising
• Inventory = Death
• Contract manufacturing
• Outsourcing
• Labour conditions

3. Understand how Zara’s parent company Inditex leveraged a
technology-enabled strategy to become the world’s largest
fashion retailer.
1.kd
Learning Objectives
Answer: Opposing the conventional wisdom of the
industry.

4. Zara’s
Approach
• Advertising and sales • Vertically integrated • In-house manufacturing

5. Zara
Results
1. Shortened lead times
• Less guessing
• From ideas to inventory
• Customer expectations
2. Less static inventory
• Micky Drexler, CEO, guessed
wrong
• Couldn’t move inventory
• Zara circumvents this risk
with flexible inventory
3. Control over
manufacturing

6. Examine how the Zara’s strategic use of information technology
influences design and product offerings, manufacturing,
inventory, logistics, marketing, and ultimately profitability.
kd2.
Learning Objectives
Answer: Gathering data based on consumer feedback
and preferences through the use of POS systems and
custom apps.

7. The
Design
• Opposite of the traditional
model
• Incorporates customer
preferences
• 30,000 items a year
• Design school
• Rotation of team members

8. Manufacturing
& Logistics
• Concept to store = 15 days
• Vertical integration and
coordination of suppliers
• Inventory optimization
• Able to respond to mid-
season shifts
• Speed beats manufacturing
costs and drives profits

9. • La Coruna & Zaragoza facilities
o Ceiling racks & customized sorting machines
o Ironed in advance and packed on hangers
• RFID technology
Information
Technology

10. Information
Technology

11. The
Stores
Limited production run
• Exclusive offerings - items tailored
to tastes of local clientele
• Encourages customers to buy right
away
• Encourages often and regular
customer visits
• Allows for minimal risk of making a
mistake 1% vs. Industry average of 10%

12. Head
Quarters
• Plays a major role in directing in-
store operations
• Software used for scheduling staff
based on projected sales volume
• “The Cube” staging area
• Forward new store layouts to
managers every 2 weeks

13. Detail how Zara’s approach counteracts several
profit-eroding challenges that many fashion retailers
struggle with.
3.
Learning Objectives
Answer: Conventional issues require non-
conventional solutions.

14. Counter
Actions
• Bi-weekly deliveries –
“Z-Day”
• Continuous rotation
• Two distribution facilities
• Flexible production and
capacity
• No advertising• No advertising

15. Identify the environmental threats that Zara is likely to
face, and consider options available to the firm for
addressing these threats.
4.
Learning Objectives
Answer: Unconventional tactics bring
unconventional threats.

16. Environmental
Threats
• Currency volatility
• Strong dependency on
one region – other
regional centers
• Variance between
markets

17. Thank You
For Listening

18. Recap
Questions
What was Zara called
originally?
a) Zara
b) Zorba
c) Zari
d) Zarbo
What is the average time for
a Zara idea to go from
concept to store?
a) 20 days
b) 1 month
c) 1 season
d) 15 days

19. Name things done in the industry that Zara refrains
from doing.
• Creating seasonal collections
• Advertising
• Having too much inventory
• Contract manufacturing
• Outsourcing
Recap
Questions

20. What are main advantages of limited
production runs for Zara?
1. Exclusive offerings - items tailored to tastes of local
clientele
2. Encourages customers to buy right away
3. Encourages often and regular customer visits
4. Allows for minimal risk of making a mistake
Recap
Questions

21. How often does Zara receive inventory?
a) Bi-weekly
b) Once a month
c) Once every 2 weeks
d) Once every 3 months
Recap
Questions